AngelList, a US-based curated closed marketplace for startups and investors, has launched a cap table management product for India — EquityList. In addition to enabling cap table management, this free product will also help startups create stock option programs and issue grants.
As companies grow and multiple investors join the company’s board, cap tables tend to become complex and managing them on spreadsheets makes them prone to errors. EquityList aims to automate this process for Indian startups and reduce inefficiencies.
“Our mission at AngelList India is to serve startups. One way we can do that is by creating tools that help them grow, which is exactly what EquityList is. In addition, it thematically fits well into the complete family of AngelList products, where startups can now be funded, hire employees, launch products, and scale (EquityList),” CEO of EquityList, Sumukh Sridhara, told Inc42.
EquityList has also partnered with legal and finance firms such as Nishith Desai, Veritas, and Burgeon to build a free document generator for Employee Stock Option Programs (ESOPs). This feature will help startups generate grant letters, e-signatures and automated reporting. The product aims to help startup founders and employees to stay updated on the value of their shares along with keeping track of other key documents. It will also allow employees to use the calculator tool to model the cost of exercising options.
Earlier this year, the Bengaluru-based deal-making platform LetsVenture also launched an ESOPs management tool called MyStartupEquity. Speaking about the existing ESOPs management tool in the market like MyStartupEquity, Sridhara agreed that there is a growing market for such tools in India as more companies adopt ESOPs and employees begin to expect them.
“However, EquityList, unlike some other offerings, is designed to work with startups on day zero, before they even have a cap table. Special features within EquityList, help deliver value to founders during all parts of the company lifecycle like a legal document generator offering a choice of documents from top firms and time-stamped data rooms for fundraising,” he added
Founded in 2009 by Naval Ravikant, AngelList is an online platform that helps startups raise capital from accredited investors. It enables investors to put in as little as $1K alongside accredited backers through investment syndicates. Some of the notable investments of AngelList India are BharatPe, DealShare, Yulu, Mall91 and CredR.
In April 2019, AngelList launched an India focused fund – The Collective backed by likes of Bain Capital Ventures’ Salil Deshpande and Flipkart’s cofounder Binny Bansal. Later in November 2019, it launched an India-focussed venture and angel fund to help individuals and venture capitalists to raise funds to invest in early-stage startups.